Smart people have been saying all along that the banking crisis could be easily solved. All the United States needs to do is create and capitalize a bunch of new banks, with clean balance sheets. Six new banks, each with 100 billion dollars of taxpayer money could leverage these pristine assets at a ratio of 6:1 - meaning each of these banks could have 600 billion dollars to begin lending tomorrow.
Smartish people say nationalize the insolvent banks, clean out their balance sheets, recapitalize them, and sell them.
But Treasury Secretary Tim Geithner, chooses to do none of this, because to do so would necessitate the dissolution of management, stockholders, and Boards of Directors. His former employer, Goldman Sachs, paid $6 million dollars into Obama Campaign coffers... against today.
So, Geithner has concocted a way to keep these insolvent banks intact, at the expense of prudent banking practice. What Geithner's Plan II intends, it to launder these toxic assets through the taxpayer filter. This video explains how that will happen.